The Government and Ngati Toa Rangatira have signed a $70.6 million deed of settlement that includes a right of attribution to the Ka Mate haka.
Treaty Negotiations Minister Chris Finlayson says it will settle all the iwi's outstanding Treaty of Waitangi claims.
Ngati Toa will also be vested with 189ha of Kapiti Island and will be given a role in its management.
The Department of Conservation will continue to be responsible for Kapiti Island, which is a bird sanctuary, and public access restrictions to protect it will be maintained.
Legislation will be introduced giving the iwi right of attribution to the Ka Mate haka, which the All Blacks use.
It will require the composer, chief Te Rauparaha, to be recognised in certain circumstances.
"The actions of the crown, that include political and military action against senior Ngati Toa chiefs, ultimately left Ngati Toa virtually landless and without resources in both the North and South islands," Mr Finlayson said.
"We can never fully compensate for the wrongs of the past but this settlement enables Ngati Toa to build a stronger future."